The bad run of the electric car manufacturer is underway. This year, Tesla’s shares got cheaper by 25 percent, while Nasdaq lost only 1.5 percent. However, from the record rating of December 16, the price of the manufacturer of electric cars has already dropped by over 35 percent.
At that time, the president of the company Elon Musk lost over $ 100 billion of net value. However, as CNBC notes, despite this loss, Musk still remains the richest man in the world, with property estimated at around $ 380 billion.
Profits are falling
Tesla said that in the fourth quarter profits and sales did not meet the expectations of analysts. At that time, revenues from the sale of cars fell by 8 percent. Compared to the previous year, and the operating income decreased by 23 percent. In the report from the end of January, the company stated that the main reason for the decline were lower average sales prices of all models from its older range of vehicles, including Model 3, model Y, Model S and Model X.
According to California New Car Dealers Association in the fourth quarter of 2024, the sale of Tesla in California, a state that was the largest market for Tesla in the country, fell by 11.6 percent.
Europe was offended by Musk?
In other markets, Tesla sales are not doing well either. According to Reuters, in Europe the sale of completely electric cars increased in January by 37.3 percent, according to industry data published on Tuesday. Meanwhile, the data of the European Association of Car Manufacturers (ACEA) showed that Tesla, recorded a decrease in sales by 45.2 percent. In the European Union, Great Britain and the European Free Trade Area, while at the same time the sale of the Chinese competitor Saic Motor, the owner of the MG brand, increased by 36.8 percent.
Consumers in China disappointed
Reuters also said that the long -awaited update of partly automated Tesla driving systems disappointed Chinese car owners produced by Musk. In the clients’ assessment, the Tesla navigation function in China did not fulfill the promises of autonomous driving technology.
Other manufacturers of electric vehicles in China, including BY, they offer their partially automated driving systems for free or at a much lower price. The popular SU7 model from Xiaomi includes equivalent company technology as a standard option for free.
Politics and business don’t go hand in hand?
The report from China increased anxiety among Tesla shareholders. Some of the concerns concern the company’s results, and some are associated with Musk itself, who spends most of his time in Washington, where they manage the so -called governmental efficiency department of President Trump, i.e. Doge – notes CNBC
Musk and his team in Washington with the consent of President Donald Trump He wants to carry out mass dismissals of employees at agencies supervising his companies, including Tesla.
Extreme political rhetoric and Musk’s activism mobilized opponents in various markets. Tesla’s shares fell at the beginning of this month after Trump announced plans to introduce wide duties on goods from Canada, Mexico and China, which took place with the decrease in the registration of Tesla vehicles in Europe in January and February.
Source: CNBC, Reuters
